Tax Chapter 2022

1 Tax Chapter 2022 for the 2021 Filing Year Indiana Department of Revenue The Tax Chapter is provided through DOR s Business Education Outreach Program. The Business Education Outreach Program provides taxpayer education and advice through speakers, presentations and programs for Hoosier organizations including professional associations, colleges, businesses and civic groups. For more information visit or email Disclaimer: Every attempt is made by the department to provide information that is consistent, with the appropriate statutes, rules and court decisions at the time of publication.

2 Any information provided by the department in this publication that is not consistent with the law, regulations or court decisions is not binding on either the taxpayer or the department. Therefore, the information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein. 1 Table of Contents Commissioner s Letter 3 Get to Know Project NextDOR and INTIME 4 Be in the Know: Changes and Updates for 2021 Tax Year 5 Added INTIME Functionality for Individual and Fiduciary Tax Types 5 IRC Conformity 6 Unemployment Compensation 7 Earned Income Credit 8 Excess Reserves Tax Credit 8 Partnership Audit Adjustment Changes 8 Mandatory Electronic Filing for Corporations 8 Payroll Service Provider and Withholding Tax Remittance 9 Registered Retail Merchant Certificates 9 Foster Care Donation Tax Credit 9 Secondary Review Requests 10 Tax Year 2021 Updates to DOR Forms 11 Due Dates for Tax Filers 14 Electronic Filing and Payment Information 15

3 Working Together Information and Tips to Help Your Clients 17 2021 Legislative Overview Highlights 20 Legislative Summary by Tax Type 23 Office of Technology (IC ) 23 Tribal-State Compact with the Pokagon Band of Potawatomi Indians (IC ) 23 Taxation and Distribution of Pari-Mutuel Revenues (IC 4-31-9) 23 Indiana Career Accelerator Fund (IC 5-34) 23 Utility Receipts Tax (IC ) 25 State Gross Retail and Use Taxes (IC ) 25 State Income Taxes (IC 6-3) 26 State Tax Liability Credits (IC ) 34 Local Taxation (IC ) 39 Local Income Taxes (IC ) 40 Taxation of Financial Institutions (IC ) 41 Motor Fuel & Vehicle Excise Taxes (IC 6-6) 42 tobacco Taxes (IC 6-7) 43 Department of State Revenue Tax Administration (IC ) 45 Innkeeper s Taxes; Other Local Taxes (IC 6-9) 49 Alcohol & tobacco (IC ) 52 Overweight Divisible Load (IC ) 53 Certificates of Title.

4 Liens (IC 9-17-5) 53 Motor Vehicle Registration (IC ) 53 Size and Weight Regulation (IC 9-20) 53 Criminal Statutes (IC 35-52-6) 55 Local Government Planning and Development (IC 36-7) 55 Local Government Public Safety (IC 36-8) 56 Additional Tax Law Education Information 57 Tax Professional Resources from DOR 58 Contact Us 59 Notes 61 2 Commissioner s Letter Tax Professional Partners, The Indiana Department of Revenue (DOR) is pleased to provide you this 2022 Tax Chapter . Our team has worked diligently to prepare this publication to help you and your clients accurately prepare returns for Indiana s 2021 tax year.

5 2021 was another challenging year one in which we completed a complex and extended individual tax season, as well as successfully implemented Rollout 3 of Project NextDOR, bringing increased functionality for individual taxes, FIT, refund fraud, ID protection and selected gaming taxes to INTIME. That s on top of managing all the other components of agency operations, making substantive progress on several service improvement and innovation projects, and keeping the safety and well-being of our team members and all our customers a top priority. Due to the commitment and great work of the 650 Hoosiers on the DOR team, we have continued to find ways to meet most of our critical service levels and deploy our most senior resources to key service channels, including our tax practitioner service line and our walk-in services throughout the state.

6 We have stayed focused on keeping our systems, operations and services functioning during very difficult times, ensuring we continue to serve the partners, stakeholders and customers that count on us. It was another year of success that we were proud to be recognized for. In 2021, our team was recognized with two more Top Workplaces awards one Top Workplace USA award and a third straight Top Workplace IndyStar award. Our team was also recognized by the Federation of Tax Administrators with two 2021 FTA awards for impactful training and employee engagement work during the pandemic.

7 The DOR team cares deeply about the work we perform and the Hoosiers we serve. We don t do it for awards, but it makes us proud to receive this recognition. Operating a very complex financial services organization like DOR in good times is incredibly difficult. Doing it during a once in a generation modernization project and once in a century pandemic is as hard as it sounds. But the amazing Hoosiers who are part of the DOR family continue to live our find-a-way mantra to serve Indiana and everyone who counts on us one day, one challenge, one transaction and one customer service interaction at a time.

8 It has been another incredibly challenging, but successful year and we are excited about what the future holds. The entire DOR team truly values the trust-based relationships we have built with the tax practitioner community. We thank you for your partnership and for the incredibly impor tant work you do to serve your clients and Indiana. Stay safe and let us know how we can help you. Respectfully, Bob Grennes, Commissioner 3 Get to Know Project NextDOR and INTIME Project NextDOR Project NextDOR is DOR s four-year modernization of Indiana s tax processing system, including a new internal tax processing software that will replace outdated technology to enable more efficient operations and service offerings.

9 For more information, visit INTIME The Indiana Taxpayer Information Management Engine (INTIME) is DOR s new, 24/7, secure self-service e-portal enabling business and individual customers to view tax account information and correspondence from DOR, register tax accounts and manage and pay taxes online. Register for INTIME and learn more by visiting INTIMEINThe new system is being released in four rollouts covering specific tax types, as shown in the timeline above. Rollout 3, which features individual income, fiduciary income and several gaming taxes, successfully launched Sept.

10 7, 2021. The graphic below illustrates the tax types that moved to DOR s new state tax administration system, the Indiana Tax System (ITS) in Rollout 3. 4 Be in the Know: Changes and Updates for 2021 Tax Year Project NextDOR s Rollout 3 focuses on individual income, fiduciary income and a handful of gaming taxes. The designated tax types affected are: Controlled Substance Fiduciary Gaming Excise (Charity Gaming) Individual Income Firework Public Safety Pari-Mutuel Wagering Racino Fees Racino Wagering Riverboat Wagering Sports Betting Supplemental Wagering Type II Gaming Individual income tax customers can make payments and refund status inquiries without being required to log in.